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Trade implications of upstream circular economy policies

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  • Shunta Yamaguchi

Abstract

Circular economy policies can aim to ensure that products placed on the market are environmentally sustainable throughout their lifecycle. These upstream circular economy policies can include initiatives to phase out hazardous substances, and enhance product durability, repairability, reusability, and recyclability. Policy instruments used to this end include Extended Producer Responsibility (EPR) schemes, eco-labelling and information schemes, product-related standards, eco-design requirements, green public procurement, and fiscal policies. While these upstream circular economy policies are increasingly considered in policymaking, their linkages with international trade have received less attention, especially in contrast to downstream aspects such as trade in waste and scrap. These policies can have potential implications for trade, including creating synergies between trade and circular economy objectives (e.g. making traded products more recyclable), as well as unintended consequences (e.g. through regulatory fragmentation). This report aims to fill this knowledge gap by exploring the trade implications of upstream circular economy policies.

Suggested Citation

  • Shunta Yamaguchi, 2024. "Trade implications of upstream circular economy policies," OECD Trade and Environment Working Papers 2024/01, OECD Publishing.
    • Handle: RePEc:oec:traaaa:2024/01-en
    DOI: 10.1787/5968c464-en
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    More about this item

    Keywords

    Circular economy; Durability; Eco-labelling; Environment policy; Extended producer responsibility; Green public procurement; Hazardous content; Material content; Product lifespan; Product-based standards; Recyclability; Recycled content; Repairability; Resource efficiency; Reusability; Trade and environment; trade policy; Trade-related environmental measures;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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